Yes, he was overtly racist.

McVeigh had just dropped out of college in 1986 (he was studying computers) and went on a binge of reading gun literature; he first encountered The Turner Diaries in a mail-order ad in Soldier of Fortune magazine and read it with so much enthusiasm that later in life he started selling copies on his own. The plot involves firearm laws triggering a chain reaction of more and more laws passing that violated individual liberty, culminating in the main character bombing the FBI headquarters in Washington.

Since it was written by a Nazi, it also advocates killing blacks and Jews. Nevertheless, the message McVeigh became obsessed with was the government coming to take away guns.

McVeigh picked up more racism in 1987 when he worked for an armored truck company in Buffalo, and his co-workers spent time mocking African-Americans getting government checks as "porch monkeys". Quoting from American Terrorist:

Here we are, busting our butts, inhaling exhaust fumes, driving around in this armored car all day long, and these people just wait for the government checks to come in. They probably get more money than we do.

When he joined the army after, there were rumors he was a racist and as a sergeant he would often task black soldiers to sweep the motor pool; he later admitted he used the n-word "in anger" (by alternate accounts, more than that) and he also said would sometimes laugh at "a good n***** joke".

His passion for The Turner Diaries led to his getting on the mailing list for the KKK. He sent $20 for a trial membership and got a WHITE POWER t-shirt, although he insist he never wore it and was trying to make a point about people wearing BLACK POWER t-shirts. He also didn't renew his membership -- he was disappointed in that he thought they would be about the restoration of gun rights but found out they were almost completely obsessed with racism and he worried they were being "manipulative to young people".

Now, that last part hints back at your issue -- it's fair to say it was gun rights rather than racism that was his primary motivator. But racism was an indirect domino. Consider the case of Richard Wayne Snell, for whom racism was a primary motivator; in late 1983 he murdered a pawn shop owner (William Stumpp) who he thought was Jewish, then later killed a black state trooper before being brought down in a shootout with Oklahoma police; he survived, but was eventually executed. Before the murders, Snell was part of a white supremist plot to attack buildings with a rocket launcher. This involved multiple federal buildings including the Murrah Building in Oklahoma City (yes, the same one McVeigh bombed) and to keep up the racism theme, the Dallas office of a Jewish group.

While the link between the plots has never been verified, we know McVeigh was at least aware of Snell.

He wrote a manifesto of sorts to a local New York newspaper in 1991

Taxes are a joke. Regardless of what a political candidate "promises," they will increase. More taxes are always the answer to government mismanagement. They mess up. We suffer. Taxes are reaching cataclysmic levels, with no slowdown in sight.

with one reference to racism. It gets depicted as a problem, but one he sympathizes with:

Racism on the rise? You had better believe it! Is this America's frustrations venting themselves? Is it a valid frustration? Who is to blame for the mess? At a point when the world has seen communism falter as an imperfect system to manage people; democracy seems to be headed down the same road. No one is seeing the "big" picture.

I think the most nuanced analysis has him "understanding" racists and casually using the n-word but not travelling down the Nazi path enough to maintain his KKK membership or consider a building a valid target of terrorism just because it has Jews.

McVeigh's own stated reason for the attacks was vengeance for the siege on the Branch Davidian compound in Waco. He went to visit when it was happening (you can even see him talking on tape). The involvement of the ATF particularly made him feel like it was a manifestation of his worst fears of the government coming to take away guns. He sent his sister a letter before the bombing accusing the ATF of "treasonous actions against the Constitution of the United States" and told them to "Remember the Nuremberg War Trials."

The overall lesson to draw is that despite many shared views, the far-right is not monolithic, and that racism only forms one portion of the conspiratorial stew.

...

Michel, L., & Herbeck, D. (2015). American terrorist: Timothy McVeigh and the Oklahoma city bombing. HarperCollins.

Springer, N. R. (2009). Patterns of radicalization: Identifying the markers and warning signs of domestic lone wolf terrorists in our midst. Naval Postgraduate School Monterey CA Dept of National Security Affairs.